If you currently run a medical marijuana dispensary or are planning to open one soon, you may be in the market for medical marijuana insurance coverage. There is no denying the countless advantages that medical marijuana offers many individuals. It has been proven to relieve pain and suffering and can be used as a treatment option for many serious and chronic illnesses. Unfortunately, operating a medical marijuana dispensary poses a number of liabilities. Learn more about medical marijuana insurance coverage, the types of coverage available, and how you can obtain an insurance policy.
What Is Medical Marijuana Insurance?
With the widespread adoption of medical marijuana in states across the U.S., it is more important now than ever for dispensaries to remain protected from certain claims. Medical marijuana insurance is designed to protect your growing dispensary business from risks that can have costly consequences. Without the right insurance policy under your belt, you could be left with no way to pay your legal expenses in the event of a lawsuit against your company. If that happens, you may be forced to close your business. Even if you manage to stay open, your business may struggle for a long time.
What Coverage Options are Available?
Whether you are a startup dispensary or have been in the business for some time, it is important to find a medical marijuana insurance policy that meets the unique needs of your company. Some of the most common insurance coverage options include:
- General Liability: General liability is a broad coverage option that typically covers claims of bodily injury and property damage. When you add general liability coverage to your policy, you can stay protected against accidents that involved third party individuals not employed by your company.
- Product Liability Insurance: If you are in the dispensary business, you sell a product to your customers. Sometimes, these products can result in injury or damage. Product liability insurance can provide protection against lawsuits involving personal injury or property damage caused by products that your business sold or supplied.
- Commercial Automobile Insurance: Your medical marijuana dispensary business may require the transport of certain goods or equipment. If physical damage occurred while performing job duties, commercial automobile insurance coverage may cover the cost of any repairs. Commercial auto coverage can be used for all types of vehicles ranging from box trucks to work vans.
- Excess Liability Insurance: Excess liability insurance provides businesses with insurance limits that are above a company’s primary liability policy. Having excess liability coverage can be useful if a claim exhausts the limits on your regular policy as the excess liability coverage will generally pick up the rest of the costs.
- Equipment Breakdown Insurance: If your dispensary uses certain equipment for normal job operations, you may find it challenging to replace these items when they breakdown. Commercial equipment can be costly and a breakdown may lead to extensive delays. Equipment breakdown insurance provides coverage for the electrical or mechanical breakdown of all types of equipment.
- Cyber Liability Insurance: As technology continues to grow, it is common for companies to take their business online. However, using technology also comes with certain risks that could result in significant lawsuits. Cyber liability insurance is specifically designed to protect companies against certain interest-based risks, such as data breaches, viruses, and similar cyber crimes.
- Loss of Income Insurance: Every company should have a backup plan. If you suddenly lose your income, do you have enough money in savings to get you through a hard time? Loss of income insurance can help you pay for your ongoing expenses, including employee payroll, mortgage payments, and taxes.
- Employee Benefits Insurance: With employee benefits insurance, you can protect your company from lawsuits resulting from administrative errors. Employee benefits insurance is often offered by employers to their employees as a way to attract and retain staff.
- Crime Insurance: Protect your company from certain types of business-related crime with crime insurance. A crime insurance policy typically provides protection that covers cash, merchandise, assets, and other types of property loss. This can occur when an individual performs fraud, forgery, embezzlement, robbery, theft, or some other type of crime.
- Property Insurance: Property insurance can protect your dispensary business from certain risks to the property, such as theft, fire, and weather damage. If you own the property in which you are running your medical marijuana dispensary, having property insurance is a must.
- EPL Insurance: Employment Practices Liability (EPL) insurance can help businesses that face certain employment-related claims, such as harassment, discrimination, wrongful discipline, wrongful termination, retaliation, and wrongful failure to promote.
Obtaining a Medical Marijuana Insurance Policy
If you are growing or dispensing medical marijuana for medical patients, having the right insurance policy can help ensure you stay protected from costly lawsuits. For more information or to obtain a policy, speak to MFE Insurance today.